Downside Risks to Domestic and Overseas Economic Conditions and Uncertainty in the Operating Environment

「During the current interim consolidated accounting period, economic conditions remained highly uncertain, affected by international developments including the situation in the Middle East, resource prices and foreign-exchange trends. In Japan, although real wages showed signs of recovery, consumers remained highly conscious of protecting their household budgets against prolonged inflation. While price sensitivity and thrift continued for daily necessities, consumers displayed a tendency toward selective spending, maintaining expenditure in areas based on individual values such as health and experiential value.」

「The business environment surrounding the Group is undergoing major change, including the normalisation of inflation outpacing wage growth, upward pressure on all costs, increasingly severe labour shortages, and instability in the procurement environment for raw materials and energy due to climate change and geopolitical factors.」

「During the six-month period ended this quarter, uncertainty about the outlook continued against a backdrop of global political instability, signs of stagnation in the Chinese economy and US trade policy. In Japan, as prices continued to rise, real wages excluding special payments remained negative year on year. Consumers remained strongly inclined to economise, and behaviour such as postponing purchases and limiting the number of items purchased was observed, particularly for food, clothing, furniture and other essentials of daily life.」

「Throughout the consolidated fiscal year, uncertainty about the outlook continued against a backdrop of global political instability, armed conflicts and slowing growth in the Chinese economy.」

「During the three-month period ended this quarter, uncertainty about the outlook continued against a backdrop of global political instability and slowing growth in the Chinese economy. In Japan, although employment and income conditions improved, it has taken time for real wages to rise because of inflation caused by the sharp depreciation of the yen and other factors. As a result, personal consumption has become increasingly polarised between frugality in everyday life and proactive spending on high-value-added products and services.」

「During the nine-month period ended this quarter, inflation continued, driven by soaring raw material prices, Russia's invasion of Ukraine and the weaker yen, while consumption became increasingly polarised between high-value-added products and products offering good value for money.」

「Against a backdrop of continued inflation driven by soaring raw material prices, Russia's invasion of Ukraine and the weaker yen, consumption has become increasingly polarised between high-value-added products and products offering good value for money.」

「During the first nine months of the current consolidated fiscal year, signs of recovery began to emerge in Japan's socioeconomic activity as restrictions on activities were eased and government tourism support measures took effect. However, uncertainty continued, with consumers becoming increasingly concerned about protecting their livelihoods amid soaring global energy and raw material prices and the sharp depreciation of the yen.」

「As households face increasing financial pressure from continued price increases for many daily necessities due to soaring global raw material and crude oil prices,」

「The group's business, financial condition and results of operations may be affected by a future deterioration in the Japanese economy, a decline in personal consumption, adverse weather caused by extreme weather events, market contraction due to population decline, and intensifying competition across industries and business formats.」

「The external environment became more challenging than initially anticipated, due to the prolonged restraint on going out caused by the rapid spread of variant strains and declining consumer sentiment.」

「The group's business, financial condition and results of operations may be affected by a future deterioration in the Japanese economy, a decline in personal consumption, adverse weather caused by extreme weather events, market contraction due to population decline, and intensifying competition across industries and business formats.」

「By segment, operating profit in the GMS (general merchandise store) and SM (supermarket) businesses was affected by weaker consumer sentiment and adverse weather conditions.」

「Going forward, in addition to a consumption tax increase and higher medical expenses and social insurance premiums, rising electricity prices and other factors may adversely affect the Japanese economy and personal consumption.」

「Going forward, in addition to a consumption tax increase and higher medical expenses and social insurance premiums, rising electricity prices and other factors may adversely affect the Japanese economy and personal consumption.」

「Going forward, in addition to a consumption tax increase and higher medical expenses and social insurance premiums, rising electricity prices and other factors may adversely affect the Japanese economy and personal consumption.」

「While employment and income conditions in Japan continued to improve, economic downturns in emerging Asian countries, including China, and resource-rich countries, together with the resulting downward pressure on the domestic economy, caused consumer sentiment to stall, making the outlook for the company's business environment uncertain.」

「Although the economy continued to recover moderately, supported by improvements in corporate earnings and employment conditions, concerns about economic downturns in emerging Asian countries and other factors made the outlook for the company's business environment uncertain.」